Seems like every developer who has a rough year now is going to spawn rumors of Microsoft a buyout. That's exactly what we love to see, a Nazi-style Microsoft conquest of everything in the digital world. It's really kind of depressing.
I don't believe anyone here has mentioned yet how easy it will be to develop an Xbox emulator. It's only a matter of time before its BIOS is cracked, history has proven that any system can be cracked and emulated with enough people contributing to the project. Any PC or Notebook PC with a Pentium III and up, equal to or greater than the clock speed of a bona fide Xbox could theoretically do the same thing. They have told us it's based on PC technology from the beginning.